MARGADARSI SERVICE CENTER PROPRIETOR POTLURI SOUDAMINI SECUNDERABAD Vs. HINDUSTAN PETROLEUM CORPORATION LIMITED CHIEF REGIONAL MANAGER RETAIL SECUNDERABAD

JUDGEMENT

(1.) The petitioner is a proprietary concern, initially established by, late P.Gnaneswar Rao, who was appointed as a dealer by the Hindustan Petroleum Corporation Limited, way back in the year 1977. A petroleum outlet was installed in premises bearing No.1-1-5/1, Rashtrapathi Road, Seeunderabad. Gnaneswar Rao died on 30.12.2006. His wife-Smt. Soudamini, was appointed as dealer, on compassionate grounds. The outlet is being run for supply of petrol, diesel and LPG gas, apart from other products.

(2.) The respondents issued a show cause notice, dated 05.05.2009, directing the petitioner to explain as to why the dealership be not cancelled. Two reasons were mentioned therein. The first is about the alleged failure of the petitioner to reach the fixed targets of sales and the second is about the loan transaction of the petitioner with State Bank of India, Seeunderabad Branch. The petitioner submitted explanation on 13.05.2009. She stated that, on account of the bereavement in the family, and lack of experience in the business certain anomalies occurred and that she would ensure that the sale targets are reached in future. She further stated that the loan account with the State Bank of India, is being settled and worked out in such a way as not to have any impact on the running of the outlet. The 1st respondent was not satisfied with the explanation. Through order, dated 17.07.2009, he terminated her dealership, with immediate effect. The petitioner challenges the same. She contends that the action of the respondents in terminating her dealership, is illegal and arbitrary and unreasonable.

(3.) On behalf of the respondents, a detailed counter-affidavit is filed. It is stated that huge investment was made for modernization of the outlet, and despite the same, the sales have gone down. Instances of the outlet being kept dry, are also cited. The impugned action is said to have been taken almost as a last resort.